Bitcoin drops as Fed chair Powell dismisses possibility of interest rate cuts in 2023.

Bitcoin fell 4% after the Federal Reserve raised its key interest rate and Chairman Jerome Powell said it's unlikely the central bank will cut rates this year. The cryptocurrency had rallied almost 50% in less than two weeks as investors sought diversification from bank deposits and the Fed injected liquidity into the financial system. The recent weakness in the banking system and potential for increases in central bank balance sheets could provide a floor for cryptocurrencies once the broader institutional reaction to the Fed settles down. Major stock indexes also traded lower on Wednesday.